topic Child's Income (Under Age 24) in Get your taxes done using TurboTax

Child's Income (Under Age 24)

taxdrama — Mon, 02 Mar 2026 11:27:47 GMT

I finished my undergrad in 2025 and am doing paid full time internship and then heading back to med school in few months. Under the "Less Common Income" section, there is a subsection on "Child's Income (Under Age 24)" which asks lot of questions like if my parents are deceased or married and what is their income, etc. When I fill this subsection my tax liability goes up significantly. Am I supposed to fill this subsection? My parents are claiming me as their dependent but I am filing my own tax return.

Re: Child's Income (Under Age 24)

taxdrama — Mon, 02 Mar 2026 12:11:37 GMT

The paid internship was with NIH, which issued a 1099-G for about $18K and showed it as Taxable Grants. Sharing to see if this is the reason I am being forced by TT to work on Form 8615, Tax for Certain Children Who Have Unearned Income. My other unearned income is about $150 in bank interest and $19 in dividends. I am also a self-employed tutor from where I earned about $5K in 2025.

Re: Child's Income (Under Age 24)

MelindaS1 — Sun, 08 Mar 2026 20:19:26 GMT

The “Child’s Income (Under Age 24)” section in TurboTax corresponds to the IRS kiddie tax rules (Form 8615).This can apply either when a parent elects to report a child’s income on their own return (Form 8814), or when a dependent child files their own return and must complete (Form 8615) due to unearned income.If you can be claimed as a dependent and have more than the IRS threshold of unearned income, TurboTax may require this section because you are subject to the kiddie tax.

[Edited 03/08/26 | 7:05am PST]

See also: IRS - Instructions for Form 1099-G (03/2024) (highlighted)

Re: Child's Income (Under Age 24)

Opus 17 — Mon, 02 Mar 2026 20:49:17 GMT

@taxdrama wrote:

The paid internship was with NIH, which issued a 1099-G for about $18K and showed it as Taxable Grants. Sharing to see if this is the reason I am being forced by TT to work on Form 8615, Tax for Certain Children Who Have Unearned Income. My other unearned income is about $150 in bank interest and $19 in dividends. I am also a self-employed tutor from where I earned about $5K in 2025.

Yes, this can be a problem. When a child is under age 24 (and meets certain other conditions) and has certain income, it can be taxed at a higher rate. This is meant to capture parents who put investments in a child's name, but it can also affect an adult child who gets certain types of income.

A 1099-G is not the right kind of tax statement for this income, it probably should have been on a 1099-NEC. Whether or not it would be reported as self-employment income or an educational stipend depends on whether this was part of a degree program or something you did after, and I would have to do more research on that. (Sometimes, companies "hire" people and falsely call them interns. For a real internship, it must be educational to the intern and the intern can't be a substitute for an employee--can't do the same duties as an employee, for example.). A don't think there is a problem classifying an NIH internship as educational. But the problem is that it is still "unearned income" which triggers the higher tax rate.

I need to ask another expert for help on this,

@DoninGA

@Hal_Al

Re: Child's Income (Under Age 24)

Hal_Al — Tue, 03 Mar 2026 02:08:52 GMT

AS @MelindaS1 said, you do not report this income in the "Less Common Income/ Child's Income (Under Age 24)" section of TurboTax. In that section, you report the information about your parents so that TT can calculate the tax on form 8615. You still have to enter the income in some other section. This section is also used by some parents (not in your case) to report a child's unearned income on the parents return (form 8814 is used instead of 8615). (EDITED)

As others have indicated, YOU have to decide how to report this income. Your choices are:

1. Other (misc) income. It will treated as unearned income and subject you to the "kiddie tax" (form 8615). But you avoid the self employment tax (SET).

2. As self employment. No kiddie tax, but you pay SET, in addition to income tax. For estimating purposes, SET is 15% of the $18K income and the $5K tutoring income

3. Stipend/Scholarship income. Research and post graduate stipends are usually reported as scholarship income. I think that is probably where your income should go.*

You avoid SET. Scholarship income is a hybrid between earned and unearned income. It is earned income for purposes of the $15,750 filing requirement (2025) and the dependent standard deduction calculation (earned income + $450, not to exceed $15,750). It is not earned income for the kiddie tax and other purposes (e.g. EIC). For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions. Since your increased standard deduction will wipe out most of your taxable income, a smaller portion will be subject to the kiddie tax.

*How to Enter scholarship/stipend:

Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section).

After answering no to having a 1098-T**, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1, from which TT treats it as hybrid income.

**If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.

Re: Child's Income (Under Age 24)

Opus 17 — Mon, 02 Mar 2026 21:30:44 GMT

And just to clarify my own answer, we are talking about the "kiddie tax" and there are two ways to approach this.

The section for "report a child's income on your return" only applies to your child, which is not the case.

However, if you are under age 24 and have certain types of income, then your income can be subject to the higher kiddie tax rates instead of the normal rates, and you may be asked some extra questions and you will see a higher rate in some cases. See @Hal_Al 's answer for your options.

Note that if you report the income in the educational section, you should delete the 1099-G from that section. If the IRS sends an automated letter asking about the 1099-G, you can explain that you reported it in the scholarship section.

Re: Child's Income (Under Age 24)

taxdrama — Mon, 02 Mar 2026 22:01:23 GMT

Thank you all for your responses. I understand that I should not be filling out the "Child's Unearned Income" section as that is for my children (which is not the case). However, if I skip that part (and having entered 1099-G in "1099-MISC and Other Common Income"), TT flags error when I reach the end for review. And, then it takes me to "Child's Unearned Income" section and starts asking me questions about my parent's filing such as if they filed jointly, if they are married, their taxable income, etc. If I fill out this section, my tax shoots up dramatically (because of my parents tax rate). So, even though the "Child's Unearned Income" section seems to be for my children, but the questions there are for my parents. Am I doing something wrong?

Re: Child's Income (Under Age 24)

taxdrama — Mon, 02 Mar 2026 22:04:38 GMT

To add, the "Child's Unearned Income" section states that, "Now, we'll help you complete Form 8615, Tax for Certain Children Who Have Unearned Income." And, then it asks questions about my parents' filings.

Re: Child's Income (Under Age 24)

Hal_Al — Tue, 03 Mar 2026 01:59:06 GMT

It is proper that you are getting those questions. You ARE subject to the kiddie tax and most of the $18K will be taxed at your parent's tax rate.

Yes, your tax will shoot up dramatically because it was entered as unearned income. Unearned income over $2700 is subject to being taxed at the parent's tax rate (the kiddie tax).

Re: Child's Income (Under Age 24)

taxdrama — Mon, 02 Mar 2026 23:30:39 GMT

You are saying "Your "Child's Unearned Income sub section" is different from the section that your parent's would get." I am also saying the same thing. But TT keeps taking me there. Where can I find the parents' section? I am fine if I have to pay kiddie tax. What I want to know is why is TT forcing me to fill my parents' info under "Child's Unearned Income sub section"? Please help.

Re: Child's Income (Under Age 24)

Opus 17 — Tue, 03 Mar 2026 00:22:54 GMT

@taxdrama wrote:

To add, the "Child's Unearned Income" section states that, "Now, we'll help you complete Form 8615, Tax for Certain Children Who Have Unearned Income." And, then it asks questions about my parents' filings.

This is correct. In this case, you are the "child" (because you are a full time student under age 24), and you will use form 8615 to calculate the correct tax. That form requires some information from your parents, to determine how much of the extra "kiddie" tax you will pay on your stipend, because your parents' income and taxes affect your taxes because you are a child under age 24 who is a full time student.

Re: Child's Income (Under Age 24)

taxdrama — Tue, 03 Mar 2026 00:29:30 GMT

I am going to fill my parents' info in the Child's Income section. I wish TT did not ask parents' info in the "Less Common Income" section. Makes it confusing. Thank you all.

Re: Child's Income (Under Age 24)

Hal_Al — Tue, 03 Mar 2026 13:45:09 GMT

@taxdrama said "I am going to fill my parents' info in the Child's Income section."

Let us know how that works out for you.

It now appears, to me, that I was partially wrong, earlier. That section is used by either the parents of such a student or the student himself. I just tried it on my desktop Deluxe, both ways. TurboTax (TT) recognizes which type taxpayer you are, from your personal info, and directs you to correct interview.

I think you still do not report this income in the "Less Common Income/ Child's Income (Under Age 24)" section of TurboTax. In that section, you report the information about your parents so that TT can calculate the tax on form 8615. You still have to enter the income in some other section. This section is also used by some parents (not in your case) to report a child's unearned income on the parents return (form 8814 is used instead of 8615).

Re: Child's Income (Under Age 24)

Hal_Al — Tue, 03 Mar 2026 02:11:30 GMT

Last reply edited

Re: Child's Income (Under Age 24)

MelindaS1 — Sun, 08 Mar 2026 20:20:05 GMT

TurboTax is directing you to the “Child’s Income” section because you meet the IRS criteria for Form 8615 (kiddie tax).The kiddie tax applies if:You can be claimed as a dependent,You are under 24 and a full-time student (or under 18),You have more than the threshold amount of unearned income,And you do not provide more than half of your own support.In that case, you must complete Form 8615 on your own return, and your unearned income may be taxed at your parents’ rate.

[Edited 03/08/26 | 7:07am PST]

I agree that this is a taxable scholarship that qualifies as unearned income, not subject to self-employment tax. You definitely want Form 8615 attached to your return. These are the requirements:

Who Must File

Form 8615 must be filed for any child who meets all of the following conditions.

1. The child had more than $2,700 of unearned income.

2. The child is required to file a tax return.

3. The child either:

a. Was under age 18 at the end of 2025,

b. Was age 18 at the end of 2025 and didn’t have earned income that was more than half of the child's support, or

c. Was a full-time student at least age 19 and under age 24 at the end of 2025 and didn’t have earned income that was more than half of the child's support. (Earned income is defined later. Support is defined below.)

4. At least one of the child's parents was alive at the end of 2025.

5. The child doesn’t file a joint return for 2025.

Re: Child's Income (Under Age 24)

taxdrama — Tue, 03 Mar 2026 13:35:51 GMT

I am using desktop Deluxe TT. From the beginning itself, I have put the 1099-G in "1099-MISC and Other Common Income" and have now entered the parents' income info in the "Less Common Income/ Child's Income (Under Age 24)" section. This way TT is not erroring out and is allowing me to complete the Federal tax returns and prompting me to work on the state return. I am hoping this is the best path forward (even though I owe substantial kiddie tax now).

Re: Child's Income (Under Age 24)

Hal_Al — Tue, 03 Mar 2026 13:55:00 GMT

I suggest you try entering the income as taxable scholarship and compare the results. Since you have desktop software, you can made a practice return without changing what you've already done (with desktop, you can prepare an unlimited number of returns, but you can only e-file five).

With your return open, click on file (upper left corner), then "save as". Give it a new name.

Re: Child's Income (Under Age 24)

Opus 17 — Tue, 03 Mar 2026 16:06:08 GMT

@taxdrama wrote:

I am using desktop Deluxe TT. From the beginning itself, I have put the 1099-G in "1099-MISC and Other Common Income" and have now entered the parents' income info in the "Less Common Income/ Child's Income (Under Age 24)" section. This way TT is not erroring out and is allowing me to complete the Federal tax returns and prompting me to work on the state return. I am hoping this is the best path forward (even though I owe substantial kiddie tax now).

Delete the 1099-G and re-enter the income as scholarship income, following @Hal_Al 's previous instructions.